Gold Prices Soar by Over 5% on US Treasury's Bond Repurchase Plan
Gold prices have surged by more than 5% in just one week, reaching their highest level since June. According to Heraeus Precious Metals' Valutation Report dated August 24, 2026, gold closed at $4,615 per ounce, up from the previous week.
The increase comes after a period of accumulation in a narrow range, similar to the jump seen in early August when prices rose by about 7%.
The US Treasury Department's decision to sharply increase its scale of buying back long-term US government securities has provided a boost for the gold market. The department will at least double the maximum scale of bond repurchases for terms from 10 to 30 years, with activities taking place between September 9 and November 4.
The market reacted strongly to this news, with US 10-year government bond yields falling by about 6 basis points to 4.65%, while 30-year yields fell by nearly 10 basis points to around 5.19%. The reduced bond yields have made gold more attractive compared to other assets.
Heraeus believes that the current increase in gold may reflect policy signals from the US Treasury Department rather than being directly affected by the actual amount of bonds bought back.